Barclays First-Quarter Profit Falls

Bank Hurt by Slowdown in Fixed-Income Trading

LONDON—A dismal quarter for Barclays PLC's investment bank raised expectations the division will be drastically overhauled in a strategy update on Thursday.

Revenue fell 41% in Barclays's fixed income, currencies and commodities division, typically its biggest earner, in the first quarter, halving the investment bank's operating profit. It was an even bigger fall than analysts had expected and compared with roughly 20% declines at...